Qualifying Ratios
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Qualifying ratios are the two debt-to-income calculations, front-end and back-end, that lenders use to decide how much mortgage you can afford.
What Qualifying Ratios means
The front-end ratio compares your proposed housing payment to gross monthly income. The back-end ratio compares all monthly debt, including the new mortgage, to that income. Each program sets limits, though automated underwriting and compensating factors can stretch them.
Florida example
A Florida couple earning $8,000 a month with a $2,000 target payment had a 25% front-end ratio. Adding $700 in car and card payments put the back-end at about 34%, comfortably inside conventional guidelines.
What they are
Qualifying ratios compare your debts to your income. The front-end ratio looks at housing, and the back-end ratio looks at all debt.
Lenders use them to judge affordability.
Why they matter
Your ratios decide how much you can borrow. Lower ratios mean more room and stronger approval odds.
We calculate your ratios before you shop. Reach out and we will show a comfortable price range.
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